Community Property Incentivizes Hiding Assets

Divorce is never easy. Unfortunately, it’s sometimes made even more difficult when one spouse attempts to hide assets during the process. While such dishonesty can happen anywhere, it’s particularly prevalent in community property states like Texas. In these jurisdictions, property is often divided “down the middle” — and while the judge is supposed to make a fair division, the judge has to rely on the evidence presented in court.

This gives deceptive individuals an incentive to keep certain monies and properties a secret. So, how can you handle hidden assets in Texas divorce cases? Unfortunately, there is no easy answer. While failing to hire a divorce lawyer can always lead to challenges, making such a mistake when hidden assets are involved can be extremely costly.

Before delving into how a person can uncover secret monies and properties, it’s important to recognize how such dishonesty can complicate divorce proceedings.

Difficulties Stemming From Hidden Assets

There are a variety of ways that divorce is further complicated when one spouse is dishonest about their assets. Perhaps the most disheartening is the fact that collaborative divorce efforts simply can’t work in these situations. Mediation, negotiation, and other cooperative approaches aren’t appropriate if both parties aren’t approaching the process in good faith.

Unfortunately, this is far from where the problems end. Other challenges created by hidden assets in Texas divorces include:

  • Potential unfair distribution of assets and debts
  • Increased legal costs stemming from extended litigation, expert fees, and attorney fees
  • The emotional toll of betrayal and the stress and anxiety that accompany it
  • Complications during discovery that could require court intervention
  • Delays in the finalization of the divorce
  • Potential legal consequences facing the spouse who is concealing assets
  • Inaccurate calculations on child support and alimony
  • The potential for future litigation if hidden assets are discovered after the fact

If your marriage is coming to an end, the best you can hope for is a smooth divorce. Unfortunately, this is challenging even when both former partners are being completely honest regarding financial and legal issues. However, you should never set aside suspicions that your spouse might be hiding something.

If something seems not right, don’t hesitate to contact an attorney. Of all the proactive steps you can take, this is likely the best way to handle hidden assets in Texas divorce cases. The attorney can help you determine whether the cost of finding those assets may outweigh the benefits, considering how difficult it may be to find them.

How to Uncover Hidden Assets in a Texas Divorce Case

Some people make great efforts to prepare for a potential divorce. Many people get started as early as possible by signing a marital agreement before “tying the knot.” Others simply avoid mixing their separate property with marital property so there’s no question as to what belongs to them after a divorce. Sadly, even these efforts can’t prevent problems caused by hidden assets.

So, what do you do if you believe your former partner isn’t being upfront about everything? There’s no guarantee that the following strategies will be simple, but they’re typically very successful at uncovering hidden assets in Texas divorces:

Hire an Attorney

The importance of this step cannot be overstated. Even if you’re certain your spouse has hidden assets, knowing this fact and proving it in court are two different things. Additionally, you may not know the full extent of their deception. Even if you can prove that certain assets have been concealed, there may be others that you don’t know about.

Take Advantage of Financial Discovery

Discovery is a critical process when trying to uncover hidden assets in a Texas divorce case. You can force your former partner to undergo depositions and interrogatories under oath. You can also submit requests for your ex to produce documents detailing their financial information. It’s even possible to issue subpoenas directly to financial institutions to have them produce documents that your spouse refuses to hand over.

Hire Investigators and Forensic Experts

Private investigators, forensic accountants, and other professionals can prove invaluable at uncovering hidden assets during a divorce. There will be times when a person is quite successful at concealing money and properties. However, there’s no such thing as a “perfect crime.” If it’s there, an expert can likely find it.

Lifestyle Analysis

A lifestyle analysis can compare a person’s behaviors to their financial status. If it seems that a person is living beyond their means, it could be a good indication that they’re hiding assets. This can be invaluable evidence during a divorce. On the other hand, finding extensive debts may explain the lifestyle. Careful analysis of credit card statements may also uncover that money was spent on an adulterous affair, gambling, or other means of wasting assets.

Request Court Orders

Court orders are the most powerful weapon you have during a divorce. No matter how hard someone tries to conceal property and money, a court has the legal authority to uncover everything. If your former partner refuses to comply, they can face serious sanctions.

Even if your spouse transferred assets to a friend or family member in order to hide them, the judge may order the person holding the assets to return the assets. The court may either undo a fraudulent transaction, or decide that the transferred assets are all that the dishonest spouse will receive, thus awarding the rest of the community estate to the innocent spouse.

Analyze Tax Returns

Tax returns are an invaluable resource when searching for hidden assets in Texas divorce cases. These documents can show undeclared income and other inconsistencies. You may also discover credits or deductions indicating that additional income or assets exist.

Navigating Divorce Involving a Dishonest Spouse

Clearly, there is no exact roadmap for how to handle hidden assets in a Texas divorce. The best approach can vary situationally, and in some cases, you’ll need to undertake a variety of strategies to uncover all monies and properties. However, keep in mind that it’s possible to target hidden assets even after a marriage is dissolved — even if doing so is more difficult.

This is why it’s advisable to work with a divorce lawyer regardless of when you become suspicious. Legal professionals will have access to resources that the common person may not even know about. From the ability to subpoena records to working relationships with forensic investigators, the value of having a legal advocate on your side simply cannot be overstated.

At Laura D. Heard Law Firm Inc., our team of family law attorneys can show you how to handle hidden assets in Texas divorces. Contact us at 210-775-0353 for your confidential consultation.